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Use the Following Information to Prepare an Income Statement for Burleson

question 31

Essay

Use the following information to prepare an income statement for Burleson Company for the year ended December 31,2012.
1.revenue from services,$28,000
2.paid $10,000 cash for land
3.paid operating expenses,$21,000
4.paid dividends to stockholders,$4,000
5.issued $6,000 of common stock for cash


Definitions:

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Lease Payments

Regular payments made for the use of an asset or property under a lease agreement.

Incremental Sales

The additional sales generated by a new marketing campaign, product launch, or any other business activity, over and above existing sales.

Cash Operating Expenses

Expenses directly related to the daily operational activities of a business, such as salaries, rent, and utilities, that require immediate cash payment.

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